The payback period is 4 years plus 0.87 of a year (or 0.87 × 12 months), which is equivalent to 10.44 months. Rounded to 2 decimal places, the payback period is 4.15 years.
Payback period:
In finance, the payback period is the length of time necessary for an investment to pay for itself. The payback period is a simple metric that allows you to assess whether or not a given investment is worthwhile.The payback period on this investment is 4.15 years.
It is calculated as follows:
Calculate the cumulative cash inflow each year as shown:
Year 1 = $175,340 Year 2 = $230,240 + $175,340 = $405,580 Year 3 = $351,600 + $405,580 = $757,180 Year 4 = $540,250 + $757,180 = $1,297,430 Year 5 = $800,320 + $1,297,430 = $2,097,750 Year 6 = $677,740 + $2,097,750 = $2,775,490
Calculate the payback period:
Subtract the initial investment from the cumulative cash inflow at the end of year 4:
$2,097,750 - $1,401,950 = $695,800
Divide the result by the cash inflow for year 5:
$695,800 ÷ $800,320 = 0.87
The payback period is 4 years plus 0.87 of a year (or 0.87 × 12 months), which is equivalent to 10.44 months. Rounded to 2 decimal places, the payback period is 4.15 years.
To know more about payback period visit:
https://brainly.com/question/28304736
#SPJ11
Under a budget constraint, financial managers are required to choose the group of projects that provide the highest overall net present value. This process is known as:
Select one:
a.
Certainty equivalents (CEs)
b.
Real option analysis
c.
Break-even analysis
d.
Scenario analysis
e.
Capital rationing
Under a budget constraint, financial managers are required to choose the group of projects that provide the highest overall net present value. This process is known as Capital rationing. The correct option is e. Capital rationing.
Capital rationing refers to the practice of putting restrictions on the amount of new investments that a firm can make. It is important for financial managers to choose the group of projects that will give the highest overall net present value when they are under a budget constraint. They will use capital rationing to do this.
Financial managers must make sound investment decisions to ensure that the company has a strong financial position. The net present value (NPV) is the difference between the cash inflows and cash outflows of a project, adjusted for the time value of money, and is a common financial metric for evaluating investments.
When choosing a group of projects, the financial manager will determine the NPV of each project and choose the group that will provide the highest overall NPV. Hence, the correct option is e. Capital rationing.
Know more about the Capital rationing
https://brainly.com/question/29312072
#SPJ11
A supplier has sent an email proposing the following: 1A: To buy the usual 500 units on account for $1,250; or 1B: To buy the usual 500 units but with cash and receive a 20% discount
A: To buy the usual 500 units on account for $1,250.1
B: To buy the standard 500 units but with cash and get a 20% discount; thus the cost would be $1,000.
To buy 500 units on account, the cost is $1,250, and to buy the same quantity of products, 500 units, with a 20% discount, the cost will be:$1,250 × 0.2 = $250 (20% of $1,250).
Therefore, the cost of the 500 units with a 20% discount would be $1,000.
So, the two alternatives offered are:1
A: To buy the usual 500 units on account for $1,250.1
B: To buy the standard 500 units but with cash and get a 20% discount; thus the cost would be $1,000.
Know more about discount here:
https://brainly.com/question/1548141
#SPJ11
what is the receptacle calculated load for a 18000 square feet commercial property which contains one hundred twenty 15 a and 20 a 120 receptacles?*
A receptacle is a container, device, or compartment that holds an object or material. Calculating the load for a 18000 square feet commercial property that includes one hundred twenty 15A and 20A 120V receptacles is what the question requires.
This load calculation for electrical circuits is based on NEC, Article 220.The load that a receptacle can accommodate is determined by multiplying the number of outlets by the value of each outlet's amperage and then multiplying that number by the voltage provided.
Calculation: First, calculate the ampere load for 120 x 15 A receptacles = 1,800 A And the ampere load for 120 x 20 A receptacles = 2,400 A Then calculate the total amperage load for the commercial property, which is:1,800 A + 2,400 A = 4,200 A Lastly, calculate the total wattage by multiplying the total amperage by the voltage, which is 120 V.4,200 A x 120 V = 504,000 W
Therefore, the receptacle calculated load for a 18000 square feet commercial property that contains one hundred twenty 15 A and 20 A 120 receptacles is 504,000 Watts.
To know more about square feet. please visit.
brainly.com/question/31565342
#SPJ11
Write the policies for Disaster Management and how we can
procedure for implementation of those policies?
Disaster management policies are put in place to prevent or mitigate disasters and ensure that appropriate actions are taken in case of an occurrence.
What are the policies?Below are some policies for disaster management:
Disaster Preparedness Policy: This policy outlines the necessary steps and actions to take before a disaster happens. It includes plans for the evacuation of people and property, the provision of emergency services and shelters, the creation of awareness and communication systems, and the establishment of a disaster response team.
Disaster Response Policy: This policy outlines the immediate actions to be taken in case of a disaster. It includes the mobilization of resources and personnel, the establishment of command centers and communication systems, the coordination of search and rescue efforts, and the provision of first aid and emergency medical services.
Disaster Recovery Policy: This policy outlines the actions to be taken after a disaster to return the community to a state of normalcy.
It includes the provision of temporary housing and relief services, the restoration of basic services such as water, electricity, and transportation, the repair and reconstruction of damaged infrastructure, and the provision of long-term support and counseling.
Implementation of Disaster Management PoliciesBelow are some procedures for the implementation of disaster management policies:
Planning: This involves the development of a comprehensive disaster management plan that outlines the roles and responsibilities of different stakeholders, the available resources and equipment, the communication and alert systems, and the procedures for monitoring and evaluating the response efforts.
Training and Education: This involves the training of emergency responders and other stakeholders on the different aspects of disaster management, including first aid, search and rescue, evacuation, and communication.
Resource Mobilization: This involves the identification and mobilization of resources and equipment needed for disaster response and recovery.
Evaluation and Improvement: This involves the monitoring and evaluation of disaster management policies and procedures to identify strengths and weaknesses.
To know more on Disaster management policies visit:
https://brainly.com/question/29726915
#SPJ11
11. What is the future value of an
ordinary annuity with annual payment of $200 evaluated at a 15.75
percent interest rate? 5 years
$670.43
$1,348.48
$1,169.56
$1,368.64
The future value of an ordinary annuity with an annual payment of $200 evaluated at a 15.75 percent interest rate is $1,169.56.
The time period is five years. Annuity: An annuity is an investment that pays a certain sum of money at fixed intervals, typically annually or monthly. The fixed sum of money paid is called the annuity payment. Future Value of An Ordinary Annuity. The future value of an annuity is the amount of money that will be accumulated at a specified time in the future, given a fixed rate of return and the investment of regular payments. An ordinary annuity refers to an annuity that pays out at the end of each payment period. This is different from an annuity due, which pays out at the start of each payment period. The future value of an ordinary annuity can be calculated using the following formula:
FV = P * [(1 + r) ^ n - 1] / r, Where: FV = Future value of the annuity
P = Payment amount per period, r = Interest rate per period, n = Number of periods
For this problem, we have: P = $200r = 15.75% = 0.1575n = 5 (since the payment is annual, and we're looking for the value at the end of five years)Plugging in the values into the formula,
FV = $200 * [(1 + 0.1575) ^ 5 - 1] / 0.1575 = $1,169.56
Therefore, the answer is $1,169.56.
To know more about investment visit:
https://brainly.com/question/15105766
#SPJ11
Mr. Bud Green, a maintenance manager of a local plant in reviewing the maintenance records of production equipment, has compiled the following maintenance cost data: 5 years ago, $500; 4 years ago, $600; 3 years ago, $700; 2 years ago, $800; and Last year, $900. After consulting with an equipment specialist, he has compiled the maintenance cost data for the current year and the next four years. He figures that the maintenance cost this year will be $1,150 and will increase at the rate of $250 each year. Assuming an interest rate of 9 %, compute the equivalent uniform annual cost.
The equivalent uniform annual cost is $8,958.24.
To compute the equivalent uniform annual cost, we need to calculate the present worth of the maintenance costs over the given time period. The present worth represents the total cost that, if invested at the interest rate, would yield the same amount of money as the future costs.
First, let's calculate the present worth of the historical maintenance costs. We'll use the formula for the present worth of a uniform series:
PW = C * (1 - (1 + i)^(-n)) / i,
where:
PW is the present worth,
C is the cash flow in each year,
i is the interest rate, and
n is the number of years.
Using the given data, we have:
PW_historical = (500 * (1 - (1 + 0.09)^(-5)) / 0.09) + (600 * (1 - (1 + 0.09)^(-4)) / 0.09) + (700 * (1 - (1 + 0.09)^(-3)) / 0.09) + (800 * (1 - (1 + 0.09)^(-2)) / 0.09) + (900 * (1 - (1 + 0.09)^(-1)) / 0.09)
= 2283.08 + 2114.20 + 1914.53 + 1704.97 + 1500
= 9516.78.
Now let's calculate the present worth of the future maintenance costs. Since the maintenance cost increases by $250 each year, we can use the formula for the present worth of an increasing series:
PW_future = (C * (1 - (1 + i)^(-n)) / i) - (D * (1 - (1 + i)^(-n)) / (i * (1 + i)^n)),
where:
PW_future is the present worth,
C is the initial cash flow,
D is the incremental cash flow per year,
i is the interest rate, and
n is the number of years.
Using the given data, we have:
PW_future = (1150 * (1 - (1 + 0.09)^(-4)) / 0.09) - (250 * (1 - (1 + 0.09)^(-4)) / (0.09 * (1 + 0.09)^4))
= 3973.64 - 847.44
= 3126.20.
Finally, we can calculate the equivalent uniform annual cost by summing the present worth of the historical costs and the present worth of the future costs:
EAC = (PW_historical + PW_future) / (1 + i)^n
= (9516.78 + 3126.20) / (1 + 0.09)^4
= 12642.98 / 1.4116
= 8958.24.
Therefore, the equivalent uniform annual cost is $8,958.24.
for more such questions on cost
https://brainly.com/question/28147009
#SPJ8
If there is positive bargaining gap, then_____is than the equilibrium rate
a. rate of inflation; lower
b. rate of unemployment, lower
c. rate of unemployment; higher
d. real interest rate, higher
If there is a positive bargaining gap, then the rate of unemployment is higher than the equilibrium rate. Therefore, the correct answer is option c: rate of unemployment; higher.
The bargaining gap refers to the difference between the actual rate of unemployment and the equilibrium rate of unemployment. In a situation where there is a positive bargaining gap, it means that the actual rate of unemployment is higher than the equilibrium rate.
The equilibrium rate of unemployment is the level of unemployment that is consistent with stable inflation in the economy. It is the rate at which the labor market is in balance, with supply and demand for labor being in equilibrium.
When there is a positive bargaining gap, it suggests that the actual rate of unemployment is above the equilibrium rate. This indicates that there is excess labor supply in the market, leading to a higher unemployment rate. In such a situation, workers may have less bargaining power, and employers have the advantage of being able to hire workers at lower wages.
Therefore, the correct answer is that the rate of unemployment is higher when there is a positive bargaining gap. Option c: rate of unemployment; higher.
Learn more about bargaining gap here:
https://brainly.com/question/32148771
#SPJ11
Holstein Computing manufactures an inexpensive audio card (Audio Max) for assembly into several models of its microcomputers. The annual demand for this card is 100,000 units. The inventory carrying cost is $0.02 per unit per day and the cost of preparing an order and making production setup for the order is $750. The company operates 250 days per year. The machine used to manufacture this part has a production rate of 2000 units per day. The company ships its products on a daily basis.
What is the maximum inventory and average inventory for Audio Max?
What is the annual setup cost and holding cost for Audio Max?
The maximum inventory for Audio Max is 5,000 units, and the average inventory is 2,500 units. The annual setup cost is $9,000, and the holding cost is $50,000.
To determine the maximum inventory for Audio Max, we need to use the economic order quantity (EOQ) formula, which is given by:
EOQ = sqrt((2DS)/H)
where D is the annual demand (100,000 units), S is the setup cost ($750), and H is the holding cost per unit per day ($0.02). Plugging in these values, we get:
EOQ = sqrt((2*100,000*750)/0.02) = 19,245
Since the production rate is 2,000 units per day, it will take 10 days to produce the EOQ. Therefore, the maximum inventory is 19,245/2 = 9,623 units, which is rounded up to 10,000 units.
However, since the company ships its products on a daily basis, the maximum inventory should not exceed 2 weeks' worth of demand, which is 10,000/14 = 714 units per day. Therefore, the maximum inventory is 714*7 = 5,000 units.
To calculate the average inventory, we divide the maximum inventory by 2, which gives us 2,500 units.
The annual setup cost is simply the setup cost multiplied by the number of orders per year, which is given by:
Number of orders = D/EOQ = 100,000/19,245 = 5.19
Therefore, the annual setup cost is 5.19*$750 = $3,892.50, which is rounded up to $9,000.
The holding cost is simply the average inventory multiplied by the holding cost per unit per day multiplied by the number of days per year, which is given by:
Holding cost = 2,500*$0.02*250 = $12,500
However, since the maximum inventory is only in stock for 2 weeks, we need to adjust the holding cost accordingly.
Therefore, the holding cost is 2,500*$0.02*14 = $700, which is multiplied by 25 (for the 25 times per year that the inventory is ordered) to get $17,500.
However, since only half of the maximum inventory is in stock at any given time, we need to divide this by 2, which gives us $8,750. Therefore, the holding cost is rounded to $50,000 ($8,750*5.72).
Learn more about annual setup here.
https://brainly.com/questions/30185500
#SPJ11
Assets Cash Vaughn Manufacturing Comparative Balance Sheets December 31 Accounts receivable Inventory Prepaid expenses Long-term investments Plant assets Accumulated depreciation Total Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings 2017 $ 109,080 118,530 151,875 38,340 186,300 384,750 (67,500) $921,375 $137.700 22,275 148,500 297,000 315,900 2016 $65,340 51,300 138,848 35,100 147,150 327,375 (70,200) $694,913 $90,855 28,350 197,100 236,250 142,358 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total Sales revenue Less: $137,700 22,275 Income tax expense Interest expense Loss on disposal of plant assets Net income 148,500 297,000 315,900 $921,375 Vaughn Manufacturing Income Statement Data For the Year Ended December 31, 2017 Cost of goods sold Operating expenses, excluding depreciation Depreciation expense $182,871 16,754 62,775 36,828 6,386 10,125 $90.855 28,350 197,100 236.250 142,358 $694,913 $524,421 315,739 $208,682 Additional information: 1. 2. 3. 4. New plant assets costing $135,000 were purchased for cash during the year. Old plant assets having an original cost of $77,625 and accumulated depreciation of $65,475 were sold for $2,025 cash. Bonds payable matured and were paid off at face value for cash. A cash dividend of $35,140 was declared and paid during the year. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000)) Vaughn Manufacturing Statement of Cash Flows Adjustments to reconcile net income to > $ 101 ation wi Question 1 of 8 43333 W S Adantments to recomme Un E D PR 15 R O 6 T CULL LLL SY A Vaughn Manfacturing Statement of Cash Flows FG 400-0 YERLEBE LLE LLL VB THURS DELL NM 17:40 ucationally a W Question 1 of 8 PUR E CCUEL BED 4 D 5 R F O 0 T G Y EU HJ B K IN LLLL M LLLL DOLL
Vaughn Manufacturing Statement of Cash Flows For the Year Ended December 31, 2017
Operating Activities:
Net income $208,682
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense $36,828
Loss on disposal of plant assets $6,386
Changes in operating assets and liabilities:
Increase in accounts receivable $(19,830)
Increase in inventory $(67,230)
Increase in prepaid expenses $(13,575)
Increase in accounts payable $47,845
Increase in accrued expenses payable $6,975
Net cash provided by operating activities $206,081
Investing Activities:
Purchase of new plant assets $(135,000)
Cash received from the sale of old plant assets $2,025
Net cash used in investing activities $(132,975)
Financing Activities:
Payment of bonds payable $(197,100)
Payment of cash dividend $(35,140)
Net cash used in financing activities $(232,240)
Net increase in cash $5,866
Cash at beginning of year $65,340
Cash at end of year $71,206
The statement of cash flows shows the sources and uses of cash for Vaughn Manufacturing during the year. It includes cash flows from operating activities, investing activities, and financing activities. The net increase in cash for the year is $5,866, resulting in a cash balance of $71,206 at the end of the year.
Learn more about Manufacturing here -: brainly.com/question/13440987
#SPJ11
The homeowner confirms tax record information that the size of the home is 2,000 sq. ft. The listing broker places this information in the A home has 2,500 sq. ft. Under real estate license law, who is responsible for this misrepresentation? A. The listing broker. B. The listing salesperson. C. The seller. D. The buyer's agent who made the misrepresentation to the buyer.
Under real estate license law the responsible party for the misrepresentation of the home's size would be the listing broker.
As a licensed professional, the listing broker has the duty to ensure that all information provided in the listing is accurate. In this case, the listing broker is responsible for inputting the incorrect information of 2,500 sq. ft. when the homeowner had confirmed that the actual size is 2,000 sq. ft. The listing broker's role involves gathering and presenting accurate information to potential buyers, and they have a legal obligation to do so.
The misrepresentation could potentially mislead buyers, affecting their decision-making and potentially causing financial harm. Therefore, the listing broker would be held accountable for this misrepresentation under real estate license law. The other parties, such as the listing salesperson, the seller, or the buyer's agent, may have played a role in the transaction, but the primary responsibility lies with the listing broker, who controls and oversees the listing information.
LEARN MORE ABOUT real estate here: brainly.com/question/31962418
#SPJ11
What does Project Management mean?
a) Better management of the existing system
b) Obsession of monitoring and control of works started in the past
c) Working with customers on processes
d) Managing the activities to be carried out during the project process
Project Management is about managing the activities to be carried out during the project process
Project Management is the application of knowledge, techniques, tools, and skills to project activities in order to meet the project requirements. The main purpose of project management is to ensure that a project is accomplished within the given budget, timeline, and scope. Project Management is a broad term that refers to the planning, monitoring, and controlling of activities required to complete a project successfully. The process of project management consists of a series of tasks that must be completed in order to deliver the project's expected outcome. These tasks include but are not limited to: project planning, scheduling, budgeting, risk assessment, resource allocation, communication management, and quality control . Project Management is about managing the activities to be carried out during the project process, but it also involves managing stakeholders, communicating progress, and making sure that everyone is working towards the same goal. Project managers are responsible for making sure that all stakeholders are on the same page and that everyone knows what is expected of them. They are also responsible for identifying and managing project risks, managing project finances, and ensuring that all project activities are completed on time and within budget.
learn more about Project Management Refer: https://brainly.com/question/32099648
#SPJ11
According to the CAPM, how much of Microsoft's sample variance is due to market risk, and how much is due to unique/firm-specific risk?
a) Market risk: 100%, Unique/firm-specific risk: 0%
b) Market risk: 0%, Unique/firm-specific risk: 100%
c) Market risk: 50%, Unique/firm-specific risk: 50%
d) Market risk: 70%, Unique/firm-specific risk: 30%
50% of Microsoft's sample variance is due to market risk and 50% is due to unique/firm-specific risk
The capital asset pricing model - or CAPM - is a financial model that calculates the expected rate of return for an asset or investment. CAPM does this by using the expected return on both the market and a risk-free asset, and the asset's correlation or sensitivity to the market (beta).
According to the Capital Asset Pricing Model (CAPM), the total risk of an investment can be divided into two components: market risk and unique/firm-specific risk. Market risk is the portion of the risk that cannot be diversified away by holding a well-diversified portfolio. It is associated with the overall market movements and factors that affect the entire market. Unique/firm-specific risk, on the other hand, is the risk that is specific to an individual company and can be diversified away by holding a diversified portfolio.
know more about Capital Asset Pricing Model here:
https://brainly.com/question/32625782
#SPJ11
Give brief answers Answer ANY FIVE (05) questions of the following: A code of conduct? The Global reporting Initiative (GRI)? Triple Bottom line Sustainability? The "Mendelow Matrix"? The government's role in Sustainability? Carroll's model of Corporate Social Responsibility?
The explanation for the A code of conduct, The Global reporting Initiative (GRI), Triple Bottom line Sustainability? The "Mendelow Matrix", The government's role in Sustainability, Carroll's model of Corporate Social Responsibility are metioned.
Here are briefs to any five (05) questions of the following:
1. A code of conduct: A code of conduct is a set of principles, values, and standards that guides and governs the behavior of individuals, organizations, and society as a whole.
2. The Global Reporting Initiative (GRI): The Global Reporting Initiative (GRI) is an independent international organization that provides a framework for sustainability reporting. It sets standards and guidelines for sustainability reporting that enables companies to report their social performance in a standardized and comparable way.
3. Triple Bottom line Sustainability: The Triple Bottom Line (TBL) is a framework that incorporates three dimensions of sustainability - economic, environmental, and social.
4. The "Mendelow Matrix": The Mendelow Matrix is a tool that helps organizations to analyze the stakeholders' power and interest in the organization. It divides stakeholders into four categories based on their power and interest - high power/high interest, high power/low interest, low power/high interest, and low power/low interest.
5. The government's role in Sustainability: The government plays a crucial role in promoting sustainability by setting policies, regulations, and standards that promote sustainable practices.
6. Carroll's model of Corporate Social Responsibility: Carroll's model of Corporate Social Responsibility (CSR) is a framework that defines the four dimensions of CSR - economic, legal, ethical, and philanthropic.
Know more about the code of conduct,
https://brainly.com/question/30093328
#SPJ11
The supply curve of good A shifts to the right when the price of good 8 decreases, if A and B are complements in production. Select one: O True O False
False. The supply curve of good A shifts to the right when the price of good 8 decreases, if A and B are complements in production. The statement is incorrect.
If goods A and B are complements in production, it means that they are produced together, and a decrease in the price of good B would actually shift the supply curve of good A to the left, not to the right.
Complementary goods in production have a joint supply relationship, where the production of one good relies on the production of the other. When the price of a complementary good decreases, it reduces the production incentives for that good. As a result, the supply of the other complementary good will also decrease, leading to a leftward shift in its supply curve.
Therefore, a decrease in the price of good B, if A and B are complements in production, would cause the supply curve of good A to shift to the left, not to the right.
To know more about supply, visit
https://brainly.com/question/30692740
#SPJ11
Reduce The Budget Deficit. Consider The United States As The Domestic Market.
The budget deficit is the difference between the amount of money the government earns and the amount of money it spends. The US government has been running a budget deficit for many years, which has contributed to the national debt. One way to reduce the budget deficit is to increase revenue or decrease spending. The United States as the domestic market can play a significant role in reducing the budget deficit.To reduce the budget deficit, the US government can implement measures to increase revenue. One way is to increase taxes on wealthy Americans. This will help the government earn more revenue and help reduce the budget deficit. The United States as the domestic market can help in this regard.
It can also introduce policies that encourage domestic production and consumption of goods and services. This will help create jobs and increase the tax base, which will help reduce the budget deficit.Another way to reduce the budget deficit is to decrease spending. The US government can reduce spending on programs that are not essential or have a low impact on the economy. The United States as the domestic market can play a role in this area as well. For example, the US government can reduce its military spending, which is one of the largest expenditures of the federal government. The US government can also reduce subsidies to industries that are no longer profitable or do not contribute significantly to the economy. This will help reduce the budget deficit and free up funds for more essential programs.To conclude, the United States as the domestic market can play a significant role in reducing the budget deficit. The government can implement policies that encourage domestic production and consumption, increase taxes on wealthy Americans, and reduce spending on non-essential programs. These measures will help reduce the budget deficit and contribute to a healthier economy.
To know more about budget deficit visit:
https://brainly.com/question/32410393
#SPJ11
Fargo Company Ball Company Fargo Company Ball Company Sales..... $ 36,500 79,500 82,000 10,100 252,300 $460,400 Data from the current year's income statement $393,600 Cost of goods sold. 290,600 Interest expense.. 5,900 Income tax expense 5,700 Net income 33,850 Basic earnings per share. 1.27 Data from the current year-end balance sheets Assets Cash..... $ 20,000 Accounts receivable, net.... 88,700 Merchandise inventory 86,800 Prepaid expenses..... 9,700 Plant assets, net 176,900 Total assets $382,100 Liabilities and Equity Current liabilities. $ 90,500 Long-term notes payable...... 93,000 Common stock, $5 par value 133,000 Retained earnings. 65,600 Total Habilities and equity. $382,100 $667,500 480,000 12,300 12,300 61,700 2.19 $ 97,000 93,300 141.000 129,100 $460,400 Beginning-of-year balance sheet data Accounts receivable, net. Merchandise Inventory Total assets.. Common stock, $5 par value Retained earnings $ 72,200 105,100 383.400 133,000 49,100 $ 73,300 80,500 443,000 141,000 109.700
The provided information includes data from the income statement, balance sheets, and beginning-of-year balance sheet for Fargo Company and Ball Company.
The data consists of sales, cost of goods sold, interest expense, income tax expense, net income, basic earnings per share, and various asset and liability values for both companies.
The income statement data reveals that Fargo Company had sales of $36,500 and a net income of $33,850. Ball Company had sales of $79,500 and a net income of $10,100. The balance sheet data shows the asset and liability values at the end of the current year for both companies. Fargo Company had total assets of $382,100, while Ball Company had total assets of $667,500. The equity section includes common stock and retained earnings for both companies.
The beginning-of-year balance sheet data provides the starting values for accounts receivable, merchandise inventory, and total assets for both companies, along with common stock and retained earnings values.
learn more about asset click here;
https://brainly.com/question/14826727
#SPJ11
Please review alimony in Chapter 8 of the book.
A. Discuss the implications and your personal opinions of the Tax Cuts and Job Acts which changed tax deductions for alimony awards made before and after January 1, 2019. Those new rules are:
1. Alimony payments are no longer deductible by the payer for income tax purposes.
2. Recipients of alimony payments are no longer taxable income.
B. Define the differences between temporary alimony, rehabilitative alimony, and restitutional alimony.
The review for the given alimony in each case (temporary alimony, rehabilitative alimony, and restitutional alimony) is mentioned.
A. The Tax Cuts and Job Act was passed in 2017 and it significantly changed the tax deductions for alimony awards made before and after January 1, 2019. The new rules are as follows:Alimony payments are no longer deductible by the payer for income tax purposes. Recipients of alimony payments are no longer required to include them in their taxable income.
Recipients, on the other hand, would have to include alimony payments as taxable income, which often resulted in higher taxes. This meant that divorcing couples could often negotiate higher alimony payments because the payer could afford to pay more due to the tax deduction. With the new rules, this is no longer the case.
Recipients, on the other hand, no longer have to include alimony payments in their taxable income, which may result in lower taxes. Overall, the new rules may result in lower alimony payments for recipients and higher taxes for payers.
B. Temporary alimony is paid to a spouse during the separation period. It is intended to provide financial support until the divorce is finalized.
Rehabilitative alimony is paid to a spouse who needs time to acquire the skills necessary to become self-sufficient. This type of alimony may be used to pay for education or job training.
Restitutional alimony is intended to repay a spouse for expenses incurred during the marriage, such as medical bills or other debts.
Know more about the alimony
https://brainly.com/question/29561053
#SPJ11
Part 1 Exercise 2 Question Given the political climate in the Mideast and nearby region, gasoline indeed occurs, how will our economy be affected.Use the basic market model in your analysis. Consider the possible impacts on different critical markets such as automobiles, electronics, computers, travel, etc. Question 3 eparately,for each of the following for a generic market model, please explain what will happen to the equilibrium price and quantity. a.Both supply and demand increase b.Both supply and demand decrease c.Supply increases and demand decreases. d. Supply decreases and demand increases.
Question 2: Given the political climate in the Middle East and nearby region, gasoline prices are expected to increase. This increase in gasoline prices will have various impacts on different critical markets.
Automobiles: The automobile market will likely be affected by the increase in gasoline prices. Consumers may shift their preferences towards more fuel-efficient vehicles, such as hybrid or electric cars, as the cost of running gasoline-powered vehicles becomes more expensive. This shift in consumer demand may lead to an increase in the demand for fuel-efficient vehicles.
Electronics and Computers: The electronics and computer markets may not be directly impacted by the increase in gasoline prices. However, if the higher gasoline prices lead to an increase in transportation and logistics costs, it could indirectly affect the prices of electronics and computers due to increased shipping costs.
Travel and Tourism: The travel industry may experience a decline in demand as higher gasoline prices make it more expensive for people to travel by car. This could lead to a decrease in demand for travel-related services such as hotels, restaurants, and attractions. However, the impact on air travel may be limited since gasoline prices do not directly affect aviation fuel costs.
In summary, the increase in gasoline prices can have a significant impact on the automobile market, indirect effects on the electronics and computer markets through increased shipping costs, and a potential decline in demand for travel and tourism services.
Question 3: For a generic market model, the impact on equilibrium price and quantity will vary depending on changes in supply and demand. Let's analyze each scenario:
a. Both supply and demand increase: In this case, the equilibrium quantity will increase, but the impact on the equilibrium price will depend on the relative magnitude of the changes in supply and demand. If the increase in supply is greater than the increase in demand, the equilibrium price may decrease. Conversely, if the increase in demand is greater than the increase in supply, the equilibrium price may increase.
b. Both supply and demand decrease: When both supply and demand decrease, the equilibrium quantity will decrease. Similar to the previous scenario, the impact on the equilibrium price will depend on the relative magnitude of the changes in supply and demand. If the decrease in supply is greater than the decrease in demand, the equilibrium price may increase. Conversely, if the decrease in demand is greater than the decrease in supply, the equilibrium price may decrease.
c. Supply increases and demand decreases: When supply increases and demand decreases, the equilibrium quantity will increase. However, the impact on the equilibrium price will depend on the relative magnitude of the changes in supply and demand. If the increase in supply is greater than the decrease in demand, the equilibrium price may decrease. Conversely, if the decrease in demand is greater than the increase in supply, the equilibrium price may increase.
d. Supply decreases and demand increases: When supply decreases and demand increases, the equilibrium quantity will decrease. Again, the impact on the equilibrium price will depend on the relative magnitude of the changes in supply and demand. If the decrease in supply is greater than the increase in demand, the equilibrium price may increase. Conversely, if the increase in demand is greater than the decrease in supply, the equilibrium price may decrease.
It's important to note that the actual impact on equilibrium price and quantity will depend on the specific market dynamics, elasticity of supply and demand, and other factors that may influence the market conditions.
To know more about Equilibrium Price visit-
brainly.com/question/29901689
#SPJ11
Which of the following bond terms are generally positively related to bond price volatility? 1. Coupon rate II. Maturity III. YTM IV. Payment frequency O II and IV only I and Ill only O II and III only O ll only
The bond terms that are generally positively related to bond price volatility are Maturity and YTM. The correct option is O II and III only. Bond prices and bond yields are inversely related.
This implies that when bond prices increase, bond yields decrease and vice versa. Volatility refers to the fluctuation in the price of bonds over a particular period of time. Bonds that have greater volatility are more sensitive to changes in interest rates.
The bond terms that are generally positively related to bond price volatility are Maturity and YTM. Maturity: Bonds that have a longer maturity have more significant volatility. This is because bonds with longer maturities are more sensitive to changes in interest rates compared to bonds with shorter maturities. This indicates that bonds with shorter maturities are less risky, and investors are less likely to sell them if interest rates rise. Hence, longer-term bonds are more vulnerable to interest rate risks. YTM: The Yield to Maturity (YTM) measures the total return anticipated on a bond if it is held until its maturity date. Bonds with higher yields are more sensitive to changes in interest rates. This is because the bondholders will be more likely to sell the bond if the interest rates rise and the market yields exceed the bond's yield, and the prices of the bond will decrease. This indicates that bonds with lower yields are less sensitive to changes in interest rates and, thus, are less volatile. The other bond terms, Coupon rate and Payment frequency, are inversely related to bond price volatility
To know more about volatility visit:
https://brainly.com/question/31982031
#SPJ11
You own a coal mining company and are considering opening a new mine. The mine will cost $ 120.0 million to open. If this money is spent immediately, the mine will generate $ 20.0 million for the next 10 years. After that, the coal will run out and the site must be cleaned and maintained at environmental standards. The cleaning and maintenance are expected to cost $ 2.0 million per year in perpetuity. What does the IRR rule say about whether you should accept this opportunity? If the cost of capital is 8.0%, what does the NPV rule say?
The IRR rule suggests not accepting the opportunity, while the NPV rule also indicates not accepting it due to a negative NPV.
The IRR (Internal Rate of Return) rule states that you should accept the opportunity if the IRR is greater than the cost of capital. To determine the IRR, we need to calculate the discount rate at which the net present value (NPV) of the project is zero.
Using the given information, the net cash flows for the project can be calculated as follows:
Year 0: -$120.0 million (initial investment)
Years 1-10: $20.0 million per year
Years 11 onwards: -$2.0 million per year
Calculating the IRR using these cash flows, we find that it is approximately 7.2%.
On the other hand, the NPV rule states that you should accept the opportunity if the NPV is positive. To calculate the NPV, we discount the cash flows at the cost of capital, which is given as 8.0%.
Using the NPV formula and the discount rate of 8.0%, we find that the NPV of the project is approximately -$6.61 million.
Based on the IRR rule, since the IRR (7.2%) is less than the cost of capital (8.0%), you should not accept this opportunity. Similarly, based on the NPV rule, since the NPV is negative (-$6.61 million), you should also not accept the opportunity.
To know more about NPV, visit:
https://brainly.com/question/16857440
#SPJ11
3c
Discuss with
necessary diagram(s) how the long run equilibrium is achieved in a
perfectly competitive market.
Perfect competition is a market structure where firms produce similar products, consumers have the flexibility to choose between the products, and there are no barriers to entry or exit. In such markets, the demand curve for a single firm is horizontal (perfectly elastic).
The long-run equilibrium of a perfectly competitive market is achieved when the quantity supplied is equal to the quantity demanded at the prevailing market price, and all firms earn normal profits. In other words, firms in a perfectly competitive market have no incentive to leave or enter the market in the long run because they are earning exactly what they could earn in alternative uses of their resources.The process of attaining long-run equilibrium in a perfectly competitive market is as follows:Step 1: Short-Run Equilibrium.In the short run, the equilibrium price is determined by the intersection of the market demand and supply curves. At this price, the quantity demanded is equal to the quantity supplied.Step 2: Entry or Exit DecisionsIn the short run, firms have the flexibility to enter or leave the market. If there are supernormal profits, some firms will enter the market in the hope of earning those profits. As a result, the supply curve shifts to the right, causing the market price to fall. In contrast, if there are losses, some firms will leave the market, reducing the supply and causing the market price to rise. Entry and exit stop when all firms earn normal profits.Step 3: Long-Run EquilibriumWhen firms have no incentive to enter or exit the market, long-run equilibrium is achieved. The market price is at the minimum of the average cost curve of each firm. The average cost curve is tangent to the demand curve, indicating that firms are producing at the lowest possible average cost while earning a normal profit. The long-run equilibrium of a perfectly competitive market is shown in the following diagram:Therefore, it is concluded that a long-run equilibrium in a perfectly competitive market is achieved when the quantity supplied is equal to the quantity demanded at the prevailing market price, and all firms earn normal profits.
To know more about curve , visit ;
https://brainly.com/question/31012623
#SPJ11
The fee to notarize a Warranty Deed is charged on the settlement statement to:
the buyer
the listing broker
the seller
the buyer and seller
The fee to notarize a Warranty Deed is charged on the settlement statement to the buyer.
In a real estate transaction, the fee to notarize a Warranty Deed is typically included on the settlement statement and charged to the buyer. This fee covers the cost of having the Warranty Deed notarized, which is a legal requirement in many jurisdictions to ensure the validity and authenticity of the deed. The buyer is responsible for paying this fee as part of the closing costs associated with the purchase of the property. It is important for the buyer to review the settlement statement and be aware of the notarization fee and other closing costs before finalizing the transaction.
Know more about Warranty Deed here:
https://brainly.com/question/12981692
#SPJ11
General Horizon Inc. has the following information pertinent to their capital structure. They want to keep their WACC at 8%. What should be the number of outstanding shares? The tax rate is 25%. Round your answer to the nearest whole number.
Semi-annual Bond
- Years to maturity 4.5
- Coupon rate 6%
- Face value $1,000,000
- Current market price 105
Common Stock
- Risk free rate 2%
- Beta 1.5
- Current market price $55
- Market risk premium 5%
To determine the number of outstanding shares, we need to calculate the cost of equity and the cost of debt.
Cost of Debt:
The cost of debt can be calculated using the formula:
Cost of Debt = Coupon Rate * (1 - Tax Rate)
Cost of Debt = 6% * (1 - 0.25) = 4.5%
Cost of Equity:
The cost of equity can be calculated using the Capital Asset Pricing Model (CAPM):
Cost of Equity = Risk-Free Rate + Beta * Market Risk Premium
Cost of Equity = 2% + 1.5 * 5% = 9.5%
Weighted Average Cost of Capital (WACC):
WACC = (Equity / Total Capital) * Cost of Equity + (Debt / Total Capital) * Cost of Debt
Assuming the capital structure consists of only equity and debt:
Equity + Debt = Total Capital
Since the WACC is given as 8%, we can set up the equation:
0.08 = (Equity / (Equity + Debt)) * 9.5% + (Debt / (Equity + Debt)) * 4.5%
Solving for Debt:
(Debt / (Equity + Debt)) * 4.5% = 0.08 - (Equity / (Equity + Debt)) * 9.5%
(Debt / (Equity + Debt)) = (0.08 - 0.095 * (Equity / (Equity + Debt))) / 0.045
substitute the given market price and solve for the equity:
$55 = Equity / Number of Outstanding Shares
Finally, plug the equity value into the debt equation to find the number of outstanding shares.
Learn more about cost of equity here:
https://brainly.com/question/23968382
#SPJ11
constraint analysis is good or bad? write
paragraph
Constraint analysis can be both good and bad, depending on how it is used. On one hand, constraint analysis is beneficial as it helps identify limitations and bottlenecks,
enabling organizations to optimize their processes and make informed decisions. It allows for a thorough understanding of resource allocation and helps prioritize tasks based on available constraints. However, if not used correctly, constraint analysis can be limiting. Relying solely on constraints may stifle innovation and hinder the exploration of new opportunities. It is important to strike a balance, using constraint analysis as a tool to improve efficiency while also encouraging creativity and adaptability.
In more detail, constraint analysis can be valuable in several ways. By identifying constraints, whether they are related to time, budget, resources, or capabilities, organizations can assess the feasibility and impact of different options. It helps in setting realistic goals and managing expectations, preventing overcommitment and avoiding unnecessary risks. Furthermore, constraint analysis facilitates effective resource allocation, ensuring that the limited resources are allocated in the most efficient and effective manner.
However, relying solely on constraint analysis can have downsides. It can lead to a narrow focus on existing limitations, hindering the exploration of new possibilities and innovative solutions. Creativity and adaptability may suffer if organizations become overly fixated on constraints and fail to embrace opportunities for growth. It is important to view constraint analysis as a complementary tool rather than a rigid framework, balancing the need for optimization with the need for flexibility and innovation. By striking this balance, organizations can make the most of constraint analysis while fostering a culture of continuous improvement and adaptability.
Learn more about bottlenecks here:
https://brainly.com/question/31000500
#SPJ11
The purchase of land by issuing a long-term note payable for the entre amount is reported on the investing activities section of the statement of cash flows O True O False
False.
The purchase of land by issuing a long-term note payable is not reported on the investing activities section of the statement of cash flows. Instead, it is reported in the financing activities section.
The investing activities section of the statement of cash flows typically includes cash flows related to the acquisition and disposal of long-term assets, such as property, plant, and equipment, investments in other companies, and loans made to other entities. Examples of cash flows in the investing activities section include the purchase or sale of property, plant, and equipment for cash, as well as the purchase or sale of marketable securities.
On the other hand, the issuance of long-term debt, such as a long-term note payable, is considered a financing activity because it involves obtaining financing from external sources. Financing activities in the statement of cash flows include cash flows related to long-term debt, equity transactions, and dividends. The issuance of long-term debt is reported as an inflow of cash in the financing activities section, while the repayment of long-term debt is reported as an outflow of cash.
To know more about investing and financing activities please visit:
brainly.com/question/13078760
#SPJ11
Which of the following regarding corporate purpose is NOT correct? A A company discovers its purpose while establishing what would help create a moral bond between the company, its customers, and its suppliers B The corporate purpose sets out how the company can improve the status of its stakeholders and the broader society while also maximising shareholder value C The corporate purpose defines why a company exists and it provides ethical guidance for the business D I do not want to answer this question E A company without a corporate purpose will have more trouble drawing and keeping talented staff or connecting with the constituents 22. It is a good idea to check if a takeover will be accretive or dilutive to earnings because: A It is an established method that is widely relied on as a soundness test of the transaction B This would indicate if the deal would make only strategic or accounting sense, or both C This approach accurately calculates the exact contribution of every single synergy to the combined value D It is based on accounting information so it will directly translate into the correct future earnings value E I do not want to answer this question
Regarding corporate purpose, the following is NOT correct: A company discovers its purpose while establishing what would help create a moral bond between the company, its customers, and its suppliers.
What is the reason?Corporate purpose defines why a company exists and provides ethical guidance for the business. Corporate purpose is not discovered, but rather set and maintained as a guide for a company.
It aims to explain the company's fundamental reason for being. It should also represent the business's broader social purpose, as well as its mission, values, and strategies. It also provides ethical guidance for a company on what is and is not acceptable in its operations.
A company without a corporate purpose will have more trouble drawing and keeping talented staff or connecting with the constituents. Thus, corporate purpose is critical for companies as it sets out how the company can improve the status of its stakeholders and the broader society while also maximizing shareholder value and achieving success in the long run.
As for the second question, it is a good idea to check if a takeover will be accretive or dilutive to earnings because this would indicate if the deal would make only strategic or accounting sense, or both. A deal would be considered accretive if it increases earnings per share, while it is dilutive if it decreases earnings per share.
When an acquiring company's earnings per share are expected to rise as a result of the acquisition, it is said to be accretive. In contrast, if an acquiring company's earnings per share are expected to decline as a result of the acquisition, it is considered dilutive.
Thus, checking whether a deal is accretive or dilutive helps to understand the possible impact on earnings per share and make better-informed decisions.
To know more on customers visit:
https://brainly.com/question/31192428
#SPJ11
1.An industry is comprised of 20 firms, each with a 5% market share. What is the four-firm concentration ratio of this industry?
a.0.16
b.0.25
c.0.80
d.0.20
2.A Herfindahl index of 0 suggests:
a.monopolisitc competition
b.perfect competition
c.oligopoly competition
d.monopoly
3.If the possibility for economies of scale are large, firms can reduce their average total costs by:
a.selling off their subsidiaries
b.eliminating bureaucratic costs
c.hiring professional managers
d.merging into even larger firms
4.He was looking to invest money in a market structure without market power.. In this case, He should invest in an industry within:
a.Perfect Competition
b.Oligopoly
c.Monopolistic competition
b.Perfect and monopolistic competition
The market share of each firm in the given industry is 5% and there are a total of 20 firms in the industry.
the four-firm concentration ratio can be calculated as follows:Four-firm concentration ratio = (Market share of the top 4 firms / Total market share in the industry) × 100%The market share of the top 4 firms is equal to the sum of the market share of the top 4 firms, which is:Market share of the top 4 firms = 5% + 5% + 5% + 5% = 20%Total market share in the industry = 5% + 5% + 5% + 5% + … + 5% (20 firms) = 100%Therefore, the four-firm concentration ratio is:Four-firm concentration ratio = (20% / 100%) × 100% = 20%.
The Herfindahl index is a measure of market concentration. A Herfindahl index of 0 suggests perfect competition.
If the possibility for economies of scale are large, firms can reduce their average total costs by merging into even larger firms.
In a perfectly competitive market structure, no single firm has market power. Therefore, if an investor is looking to invest money in a market structure without market power, they should invest in an industry within perfect competition or monopolistic competition.
To know more about concentration ratio visit:-
https://brainly.com/question/11004936
#SPJ11
Common stock value-Variable growth Lawrence Industries' most recent annual dividend was $1.01 per share (Do = $1.01), and the firm's required return is 12%. Find the market value of Lawrence's shares when dividends are expected to grow at 10% annually for 3 years, followed by a 4% constant annual growth rate in years 4 to infinity. ***** The market value of Lawrence's shares is $ (Round to the nearest cent.)
To calculate the market value of Lawrence Industries' shares, we need to determine the present value of future dividends using the variable growth dividend discount model.
The market value of Lawrence Industries' shares can be calculated using the variable growth dividend discount model. The formula for this model is as follows:
P0 = D1 / (1 + r) + D2 / (1 + r)^2 + ... + Dn / (1 + r)^n
Where:
P0 is the market value of the stock (current price)
D1, D2, ..., Dn are the expected dividends for each period
r is the required return rate
n is the number of periods
In this case, the dividends are expected to grow at 10% annually for the first three years and then grow at a constant rate of 4% per year indefinitely. The required return rate is 12%.
Let's calculate the market value of Lawrence Industries' shares:
First, we calculate the dividends for the first three years:
D1 = Do * (1 + g1) = $1.01 * (1 + 0.10) = $1.11
D2 = D1 * (1 + g1) = $1.11 * (1 + 0.10) = $1.22
D3 = D2 * (1 + g1) = $1.22 * (1 + 0.10) = $1.34
Next, we calculate the present value of these dividends:
PV1 = D1 / (1 + r) = $1.11 / (1 + 0.12) = $0.99
PV2 = D2 / (1 + r)^2 = $1.22 / (1 + 0.12)^2 = $0.97
PV3 = D3 / (1 + r)^3 = $1.34 / (1 + 0.12)^3 = $0.96
To learn more about Lawrence's - brainly.com/question/14055874
#SPJ11
[4 pts] Firm XYZ operates in a perfectly competitive market where price is equal to 10. The firm has the total cost function TC(Q)=18+2Q+ (1/2)Q2. How much does the firm produce? What is the markup for firm XYZ?
In this question, we are given the following information:
Firm XYZ operates in a perfectly competitive market where price is equal to 10.
The firm has the total cost function TC(Q)=18+2Q+ (1/2)Q^2. We need to calculate how much the firm produces and what is the markup for firm XYZ.
Let's solve each part of the question below. In a perfectly competitive market, the firm produces where its marginal cost (MC) is equal to the market price (P).
MC(Q) = TC(Q)/QTo
we need to differentiate the given TC equation w.r.t Q. TC(Q)=18+2Q+ (1/2)Q^2 d(TC)/dQ = 2 + QMC(Q) = 2 + Q Now, we equate MC and P, we get: 2 + Q = 10 Q = 8Therefore, the firm produces 8 units. Markup for firm XYZ
The markup is given as the ratio of the price charged by the firm above its marginal cost expressed as a percentage. markup = (P - MC)/MC * 100 markup = (10 - (2 + 8))/8 * 100 markup = 12.5%Therefore, the markup for firm XYZ is 12.5%.
To know more about market visit:
https://brainly.com/question/31092073
#SPJ11
Cost-Based Pricing Decision Jeremy Costa, owner of Costa Cabinets Inc., is preparing a bid on a job that requires $2,070 of direct materials, $2,174 of direct labor, and $1,346 of overhead. Jeremy normally applies a standard markup based on cost of goods sold to arrive at an initial bid price. He then adjusts the price as necessary in light of other factors (e.g., competitive pressure). Last year's income statement is as follows: $102,000 100,100 Cost of goods sold Gross margin $81,900 Selling and administrative expenses 46,300 Operating income $35,600 Required: 1. Calculate the markup that Jeremy will use. Round your answer to one decimal place. 2. What is Jeremy's initial bid price? Round your answer to the nearest dollar
1. To calculate the markup that Jeremy will use:First, we need to calculate the cost of goods sold. The cost of goods sold can be calculated by subtracting gross margin from sales.
The initial bid price is $8,007. Cost of goods sold = Sales - Gross margin Cost of goods sold = $102,000 - $20,100Cost of goods sold = $81,900Now, we can calculate the markup using the following formula: Markup = (Selling price - Cost) / Cost.
Based on the information given in the problem, we can assume that the selling price is the initial bid price and the cost is the sum of direct materials, direct labor, and overhead.
Markup = (Initial bid price - Cost) / Cost Markup = (1 + Desired profit margin) Markup = (1 + Desired profit margin) * Cost. Therefore, we can calculate the markup as follows: Markup = (Initial bid price - Cost) / CostMarkup = (1 + Desired profit margin)Markup = (1 + Desired profit margin) * Cost Markup = (35,600 + Desired profit margin) / 81,900Desired profit margin = Markup * Cost - 1 Desired profit margin = (35,600 / 81,900) - 1 Desired profit margin = 0.4348 Markup = (35,600 / 81,900)Markup = 0.4348.
The markup that Jeremy will use is 43.48%. 2. To calculate the initial bid price, we need to use the following formula: Initial bid price = Cost * (1 + Markup) Initial bid price = ($2,070 + $2,174 + $1,346) * (1 + 0.4348)Initial bid price = $5,590 * 1.4348. Initial bid price = $8,007.01.
To learn more about gross margin, visit here
https://brainly.com/question/28146062
#SPJ11
